Santos secures financing for Moomba CCS project

Australian energy company Santos has secured financing for its share of the $220mn Moomba carbon capture and storage (CCS) project in South Australia, it said on February 26.

The company has obtained facilities totaling $150mn with a five-year tenor to cover project costs incurred to date and to support the project as it progresses towards its first injection, targeted for mid-2024.

“The strong support Santos has received is underpinned by the progress we are making on our Climate Transition Action Plan that is focused on reducing our own emissions and those of our customers, as well as on developing low-carbon fuels as customer demand evolves,” Santos CEO Kevin Gallagher said. 

The first phase of the Moomba CCS project is reported to be 80% complete, with a aim of achieving approximately $24/tonne lifecycle breakeven storage costs. Once operational, the project will have the capacity to store up to 1.7mn tonnes/year of CO2. According to Santos, this equates to an annual reduction of about 28% of the total emissions achieved in Australia's electricity sector last year.

Santos sees the Cooper Basin playing a significant role in the energy transition, envisioning its transformation into a decarbonization hub. The basin holds the potential to produce low-carbon fuels and offer CCS services that could contribute to emissions reduction in critical sectors such as LNG and hard-to-abate industries like steel, aluminum, and cement.

The company has recently entered into agreements with international third parties to explore the feasibility of capturing, transporting, and sequestering their emissions at the Moomba facility, further solidifying Santos' commitment to sustainable energy solutions.